Higher education system of a country plays a significant role in the creation of skilled human resources. In the emerging scenario of knowledge based on society across the globe, India is well placed with potential brains needed for the revolutionary changes. The New Education Policy of India considered that, “Expenditure on Education is nothing but investment which in turn has a multiplier effect on the utilization of other resources”. Educational expenditure and investment in human being results in enhanced future output. While giving education, parents expect that this expenditure will help increase the life time earning of their children or education will help them to be better human beings. According to the parents’ expectation the expenditure is either investment or consumption. As investment education serves as a means of making one more productive. When the expenditure on education is made with a view to having more moral and human vales, then education becomes consumption.